Author: Jonathan Miller

Appraisers Are Ghosting AMCs? 58

Appraisers Are Ghosting AMCs?

From The Chrisman Commentary (Rob is a mortgage broker but an essential source of information on the mortgage industry). You can subscribe here. From Appraisals are near the top of any list of current lender and borrower complaints about the processing of mortgages. This week I received this note from Mike Simmons, Co-President of AXIS AMC. “I’ve heard of something overhanging the appraisal industry. Namely, that appraisers are ghosting (abandoning) orders and are beyond accountability. Part of my responsibility at AXIS Appraisal Management Solutions is to attend lender conferences and talk about the appraisal industry, and addressing difficult topics centered...

USPAP Definitions of 'His' and 'Her', The New ‘Misleading’ Debacle 16

USPAP Definitions of ‘His’ and ‘Her’

The USPAP Exposure Draft Process Continues To Step Outside Their Purpose With Her / Him as the new ‘Misleading’ Debacle The general idea of definitions added to USPAP was supposed to be industry-specific nomenclature. Because ASB doesn’t have policy writers nor does legal counsel review their work, we get a lot of garbage embedded into the document. And then it often gets removed because it was never correct, to begin with. This garbage in/out process is by design. There is no incentive for the technical boards (AQB, ASB) to get it right. This way USPAP can continue to be arbitrarily...

ASC Wants to Make USPAP Free 5

ASC Wants to Make USPAP Free!

The ASC Wants And Has The Funds To Make USPAP Free! And More! This press release is seismic for appraisers so please read it: Press Release: Appraisal Subcommittee (ASC) Board Approves Fiscal Year 2022 Budget of $9M including nearly $5M in Grant and Technical Assistance Funding With the context of TAF’s bat-shit crazy letter, here are some key changes in the relationship between TAF and ASC: ASC wants USPAP to be free, enable diversification of the ASB and AQB which are NOT diversified and never have been and they want to study alternatives to the insanely wasteful two-year USPAP update...

The Appraisal Foundation Is About To Get PAVEd 13

TAF Is About To Get PAVEd

The current administration is addressing the lack of diversity in housing valuation head-on with the formation of an interagency task force on Property Appraisal and Valuation Equity (PAVE). Here are the details of the PAVE Task Force. They just had their first meeting and this is a serious effort unlike the silliness of TAF’s bureaucratic actions of the past year that were nothing more than window dressing to the lack of diversity problem within the appraisal industry. Incidentally, The Appraisal Foundation is not part of PAVE Task Force. Keep that in mind when you read their bat-shit crazy letter again and think about the fact that...

Recent Policy Changes Make Room for Bifurcated Appraisals 12

Paving the Way for Hybrids

…since we know retail mortgage lenders, they will demand appraisers take their own photos but accept MLS or no photos in bifurcated “appraisals.” An appraiser shared these modifications with me: Exterior photographs Clear, descriptive photographs showing the front, back, and a street scene of the subject property and the front of each comparable. The subject and all comparables must be appropriately identified. Acceptable photographs include original images from photographs or electronic images, copies of photographs from a multiple listing service, or copies from the appraiser’s files. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not...

Appraising Madoff... Thankfully No Tears Are Shed For Him 5

Appraising Madoff

It was a bit surprising how little attention was paid to the announcement of Madoff’s death in prison. Good. His returns were amazingly linear and there were a number of people that kept calling out the ponzi but he was close with regulators. Because my firm is located in NYC, we’ve ended up doing appraisals in matters related to the post-Madoff tragedy/cleanup. All those people who trusted in him that had their finances destroyed – still hard to process. In the aftermath, we appraised the properties of his wife, brother, both of his sons (the apartment where one sons committed...

Appraisal Waivers Explosion 10

Appraisal Waivers Explosion

For all the talk about how important appraisers are to risk management by the GSEs, we really aren’t. There is a compelling blog post using AEI data by Ryan Lundquist over at Sacramento Appraiser Blog. Appraisal waivers have really exploded in recent years – especially during the pandemic. But how many are there exactly? Let’s look at actual numbers to walk away with some perspective. These stats are from January 2021 from AEI. QUICK SUMMARY: 47.4% of all Freddie Mac loans had a waiver 44.5% of all Fannie Mae loans had a waiver Waivers are far more common during refinances...

USPAP one year extension 1

Reason Why USPAP Was Extended

What is the actual reason USPAP was extended without warning for an additional year? Don’t get me wrong. I am all for longer USPAP cycles or doing updates on an as-needed basis in an industry that changes very little. As I’ve mentioned before, Dave Bunton of TAF said during the ASB public call on February 19th that USPAP was extended another year because of COVID – yet that makes no sense. Zoom calls are ubiquitous these days, so COVID is not a legitimate reason – we can argue that TAF is MORE efficient with Zoom. I bring this up specifically...

Appraisers Are Sitting Ducks to Random Legislation 12

Appraisers Are Sitting Ducks to Random Legislation

Bill A5185 and AMC Bill A5146 introduced to the state legislature in New Jersey show just how much state legislators don’t understand the appraisal profession. Valuation Legal warned us about this back in December: Appraiser and AMC Laws to Include Prohibitions Against Discrimination. From Bill A5185: 2. a. Prior to the initiation of a residential property appraisal, a holder of a license or certification under P.L.1991, c.68 (C.45:14F-1 et seq.) or registration under P.L.2017, c.72 (C.45:14F-27 et al.) shall provide a property seller with a document, in a form and manner prescribed by the board, informing the property seller of...

Epic Fail - AI Needs a Complete Makeover 6

Epic Fail – AI Needs a Complete Makeover

As I’ve chronicled in the Appraiserville section of my Housing Notes newsletter since 2016, the scale of Appraisal Institute bureaucratic self-dealing of the executive committee and some members of the AI Board of Directors is breathtaking. Over the past decade or more, AI National has been able to keep a lid on the membership backlash by threatening to remove a member’s credentials for speaking out. Membership has been reluctant to risk losing something they worked hard for in both time and money that they have remained quiet – until the past few years. With the significant devaluation of the SRA...

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